Faced with new bid, Toshiba looks set to miss chip sale deadline

Industry:    2017-09-01

Toshiba Corp (6502.T) looks set to miss its own deadline of Aug 31 to agree an $17.3 billion sale of its chips business, a deal that would plug a gaping balance sheet hole and help the group avoid an embarrassing and potentially costly delisting.

Toshiba’s board had been expected to review an offer by a consortium led by Western Digital (WDC.O) on Thursday, though sources familiar with the matter said a deal was unlikely to be given final approval as the two have not agreed key details.

Further complicating matters, rival suitor Bain Capital made a revised last-minute offer for the unit, bringing in Apple Inc (AAPL.O) to help bolster its bid, sources with direct knowledge of the matter said late on Wednesday.

The Japanese conglomerate has been trying to sell its prized memory chip unit for months, in an attempt to pay down debt and cover the impact of more than $6 billion in liabilities linked to U.S. nuclear arm Westinghouse.

A senior banking official familiar with the talks said Toshiba was still likely to sign a deal with the Western Digital group, as legal challenges from Western Digital, seeking to safeguard its partnership with Toshiba, made it difficult to accept other any other offer.

print
Source: